Abstract

The efficiency of bus routes is an important performance measure for bus service providers. From the viewpoint of the bus companies, the way in which resources are used to transform routes into an efficient route is essential. This study has an objective of analyzing the input factors influencing the cost efficiency of bus routes using stochastic frontier regression. The half-normal stochastic frontier model is implemented and it gives an excellent result in estimating the technical efficiencies and variables that affect the efficiency of bus routes. Based on the results, service improvement recommendations are provided in this study.

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